Amcor acquires Nampak Flexibles for $22m
‘Flexibles industry is more fragmented than glass or metal packaging but there has been significant M&A activity’
The company has extrusion, lamination and conversion capabilities across three plants, and generates sales of approximately $94m a year in the beverage, food and home care markets.
Flexibles prolong the life of food
Nicholas Mockett, packaging M&A specialist at London-based investment bank, Moorgate Capital told FoodProductionDaily, flexibles is a high-tech way to prolong the life of food thereby reducing food waste and creating a more environmentally friendly supply chain.
“The flexibles industry is still more fragmented than say glass or metal packaging but there has been significant M&A activity including Amcor’s acquisition of the Alcan businesses in 2009 and Wendel’s acquisition of Constantia in 2015,” he said.
“This latest deal for Amcor makes strategic sense. Africa is a big opportunity for the packaging industry. As living standards rise the indigenous demand for packaging will rise.
“Africa also produces food which is exported for example, to Europe and is often packaged at point of production before it is shipped to reduce waste.”
Highest growth segment
Mockett added the flexible packaging industry is worth over $200bn globally and is one of the highest growth segments of the packaging industry.
“This is driven by the rising population and middle class globally demanding more food and in particular more protein,” he said.
“Furthermore, demographics such as more single people households, more working mothers, more people living in cities rather than rural environment, and consumer preferences for convenience drive the demand even in advanced economies.”
Ken MacKenzie, CEO/MD, Amcor, said the acquisition provides a platform for growth in the African region.
“Nampak Flexibles services many of Amcor’s existing global customers and creates the opportunity to leverage our products and design capabilities into this market,” he added.